Sunday, May 29, 2011

Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis

Conclusion

The consumer market for beverages is rapidly evolving. Major beverage companies must adapt to this changing business model in order to stay ahead of the competition and continue to grow profits. Companies like Coca-Cola and PepsiCo continue to buy up rival beverage brands, and now they have begun a period of vertical integration. This trend involves acquiring bottling partners’ operations around the world, but starting in North America first. Coca-Cola’s acquisition of substantial assets from CCE was accomplished at a price which included no market premium. Coke expects synergies of $350 million or more in a deal valued at $12.3 billion. The value the firm has obtained in this acquisition and subsequent reorganization of its North American unit, has already begun to become clear. While the industry climate continues to hit beverage makers with increasing costs and shifting demand patterns, Coca-Cola is taking strides through M&A activity to effect long-term top and bottom-line growth. The Coke/CCE acquisition goes straight to the core of Coca-Cola’s broader market strategy that puts heavy importance on continued rapid M&A. This strategy will help Coca-Cola continue to be the world leader in beverages.

More posts from a paper on Coca-Cola M&A Activity (including merger with CCE):

Coca-Cola M&A Activity, CCE Acquisition: Executive Summary
Coca-Cola M&A Activity: Introduction
Coca-Cola M&A Activity: Product Trends
Coca-Cola M&A Activity: Demand and Economic Trends
Coca-Cola M&A Activity: Business Model Trends in the Beverage Industry
Coca-Cola M&A Activity: Beverage Industry Business Model Trends (2)
Coca-Cola M&A Activity: Company Strategic Objectives
Coca-Cola M&A Activity: Company Strategic Objectives (2)
Coca-Cola M&A Activity: Company Portfolio Analysis
Coca-Cola M&A Activity: Company Portfolio Analysis (2)
Coca-Cola M&A Activity: Company Portfolio Analysis (3)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor)
Coca-Cola M&A Activity: PepsiCo M&A Portfolio Analysis (Largest Competitor) (2)
Coca-Cola M&A Activity: Other Beverage Industry M&A Activity
Coca-Cola Acquisition of CCE North America: Deal Structure
Coca-Cola Acquisition of CCE North America: Deal Structure (2)
Coca-Cola Acquisition of CCE North America: Major Legal and Financial Players
Coca-Cola Acquisition of CCE North America: Regulatory and Shareholder Approval of the Transaction
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success
Coca-Cola Acquisition of CCE North America: Implementation Analysis: Likelihood of Acquisition Success (2)
Coca-Cola Acquisition of CCE North America: Conclusion to M&A Deal Analysis
Coca-Cola CCE Merger: Table of Contents and Works Cited List